The hottest ZCL composite company acquired dualam

ZCL composite material company acquired dualam plastic company

recently, Canadian ZCL composite material Co., Ltd., a manufacturer of oil storage tanks, acquired Duala m Plastic Co., Ltd. under the strong guidance of the Department of raw materials industry Dualam Plastics Co., Ltd., located in Montreal, Quebec, Canada, is an expert in composite products for corrosion-resistant applications

ven CT é also said: "as we have said in the past, we believe that there are huge business opportunities in the corrosion-resistant product market. With the participation of the strong team of dualam Plastic Co., Ltd., I firmly believe that now we can fully improve our company's share in the corrosion-resistant product market."

financial details

zcl composites Co., Ltd. signed a share purchase contract on the Toronto Stock Exchange (TSX), which stipulated that the acquisition of all issued share capital of dualam Plastics Co., Ltd. by ZCL composites Co., Ltd. took effect on January 4, 2010. According to the final account adjustment, the final purchase price reached was US $20.5 million, including cracks in the use process, including the working capital and the compensation provided to the seller after the company was closed. The contract also includes an earn out clause, so that the seller can obtain another $6million fund within two years after the acquisition according to the predetermined criteria

as of November 30, 2008, the consolidated income of dualam Plastics Co., Ltd. in the fiscal year was nearly $44million, and the profit before interest, tax, depreciation and amortization (EBITDA) was about $4.5 million

explanation of terms:

earn out

earn out refers to the transaction mode that changes the traditional one-time payment method into payment according to the performance in a certain period of time in the future due to the inconsistent judgments of both parties on value and risk. It is similar to the often said gambling agreement. It just doesn't involve the operation authority, only the reward plan

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